Citibank, which told judges this week that Argentina is holding a gun to its head over a $5 million bond interest payment due September 30, faces the possibility the trigger may be pulled as the court threw out its appeal of an order barring it from forwarding the payment.

Citibank claims Argentina has threatened civil and criminal sanctions, including the possible nationalization of Citibank Argentina, if it fails to pass the interest payment to holders of $8.4 billion in U.S. dollar-denominated bonds issued under Argentine law and payable locally.

The dismissal leaves in place the order by U.S. District Judge Thomas Griesa that blocks the unit of New York-based Citigroup Inc. from forwarding payments if Argentina keeps refusing to pay a group of hedge funds led by Paul Singer’s Elliott Management Corp. that holds Argentina’s defaulted debt.